SSTI Digest

Over the five-year period from 2004 to 2008, 124 of the 366 U.S. metropolitan statistical areas experienced a change in per capita income at a greater rate than the U.S. as a whole, according to statistics released last week by the Bureau of Economic Analysis (BEA). In 2008, per capita personal income in the U.S. was $39,582, a 19.4 percent increase since 2004. To further examine all 366 metro areas in the U.S., SSTI has prepared a table showing the amount and change in per capita income for each MSA from 2004 to 2008.

The metro area situated around Midland, Texas experienced the largest increase in per capita income, growing by 51.1 percent over the five years. The Midland MSA was also in the top ten of MSAs in its projected 2008 per capita income.

Rounding out the top 10 in terms of five-year percent increases were the metro areas centered around:

Congress has approved a two-month extension for the Small Business Innovation Research (SBIR) Program, which was set to expire on Friday, July 31. S. 1513 extends the program in its current form until Sept 30, 2009, which coincides with the end of the federal fiscal year.

The U.S. venture capital industry showed signs of growth during the second quarter of 2009, according to the most recent update from the National Venture Capital Association and PricewaterhouseCoopers Moneytree Report. While the total number of deals remained flat, total dollars invested increased by 15 percent over the first quarter of the year. Much of the growth is the result of increased investment in seed and early-stage companies, which grew 67 percent over the previous quarter in an encouraging sign for entrepreneurs. Life science (including the biotechnology and medical device industries) investment also received a boost, receiving the highest percentage of U.S. venture capital dollars the sector has received in the history of the report.

The New York State legislature passed an act enabling New York City to move forward with a $3 million biotech tax credit that is expected to encourage biotechnology firms to bring their jobs, innovation, and emerging technologies to the city. The bill (S.4845-B/A.8131) is expected to be signed into law by Gov. David Paterson.

Among the first beneficiaries of the credit will be new tenants for the East River Science Park (ESRP), a $700 million bioscience complex being built along First Avenue between 28th and 30th Streets. Last week, ESRP announced its first signed tenant, biotechnology company ImClone Systems, which is owned by Eli Lilly. The city's new biotech tax credit, in tandem with state tax incentives and broad-based government investment in diversifying the local economy, will bring more such companies to ESRP and sites across the five boroughs.

Funding for higher education initiatives fell victim to Ohio's budget woes as legislators worked to fill a projected $3.2 billion deficit. The enacted budget signed into law earlier this month by Gov. Ted Strickland cuts spending by $2.5 billion and leverages $5 billion in federal stimulus funds, according to the governor's office.

Earlier this year, Gov. Strickland asked lawmakers to continue for a third year the tuition freeze at all public universities. Funding for this request was not included in the final budget, and as a result, universities and colleges are allowed to raise tuition by 3.5 percent each of the next two years. Two schools, Ohio State University and Cuyahoga Community College, announced they would maintain level tuition for the upcoming year despite the cuts.

The legislature approved a budget agreement for the 2009-11 biennium last month, preserving partial funding for Oregon innovation efforts and passing legislation aimed at green job creation. A major component of Gov. Ted Kulongoski's climate change agenda did not survive the legislative session, however.

Along with $2 billion in cuts, the approved budget relies on federal stimulus funds and taps into state reserve funds, reports the Portland Business Journal. To generate additional revenue for the state, Gov. Kulongoski signed legislation last week raising both personal income taxes for top earners and corporate income taxes. Although lawmakers typically meet every other year, the legislature likely will convene early next year to address any further budget gaps, the article states.

Gov. Pat Quinn recently signed into law a six-year, $31 billion Jobs Now plan and smaller capital bill supporting science and technology research and commercialization and broadband deployment. The Illinois Department of Commerce and Economic Opportunity (DCEO) will administer several of the grants.

Funding for the Jobs Now plan is provided by a combination of state debt and federal and local matching funds. The bill allows the state to access more than $3.7 billion in federal American Recovery and Reinvestment Act funds. Taxpayers, however, will face several fee increases to pay for the 20-year bonds issued to provide funding for the state's $13 billion share of the six-year capital plan.

Decreases in the number of young adults in the state are more a result of fewer children being born 25 to 35 years ago, and not because of a substantial brain drain or outmigration of talent from New Hampshire, according to a task force convened by New Hampshire Gov. John Lynch. However, attracting and retaining younger workers to the state is imperative because of the large share of baby-boomers in the workforce that will be retiring in the next decade. Coupling the state's skilled workforce needs with the demographic trend of a 23 percent reduction of 25 to 34 year-olds in New Hampshire from 1990 to 2000, the task force presented to the Governor recommendations for boosting the number of young adults in the state.

Rebecca Bagley, who left her position as deputy secretary for the Technology Investment Office within the Pennsylvania Department of Community and Economic Development, was appointed president-elect of NorTech. Bagley will succeed Dorothy Baunach, the founding staff director of NorTech, as president and chief executive officer. Baunach will become president emeritus, serving as an adviser until December 2010. John Sider has been appointed to succeed Bagley. Prior to his appointment, Sider served as the director of venture investment for DCED.

Steve Crawford is leaving Brookings to take a new job as vice president for policy and research at CFED -- the Corporation for Enterprise Development in Washington, DC.

The National Telecommunications and Information Administration (NTIA) has released new information about its stimulus-funded grant program for state-based broadband mapping and planning initiatives. The State Broadband Data and Development Grant Program will provide approximately $240 million in grants to assist states or their designees to develop state-specific data on broadband deployment and adoption. The competitive, merit-based awards will require funding matches with applications due by August 14.

The program was introduced as part of the American Recovery and Reinvestment Act and the Broadband Data Improvement Act. By funding various statewide initiatives, NTIA plans to combine the resulting data with public information to create a national broadband map. The Recovery Act requires that such a map be publicly-available by February of next year. This map will help inform future research and policy decisions to expand high-speed internet access.

Gov. Jim Doyle signed the 2009-11 biennial budget last month, providing funding for university-based research and enhancing tax credits for angel and venture investors supporting high-tech R&D.

Several of the governor's priorities outlined earlier this year in the Digest as part of the state's stimulus plan were funded this session, including the following provisions to enhance the Angel Investment and Venture Capital Tax Credit programs, known as Act 255:

While maintaining a $1 billion reserve over the next biennium, the 2009-11 budget signed into law by Gov. Mitch Daniels reduces by half funding for the state's 21st Century Research and Technology Fund and appropriates only a fraction of the requested $70 million for the Indiana Innovation Alliance, an initiative to grow the state's life science industries.

Indiana's 21st Century Research and Technology Fund administered by the Indiana Economic Development Corporation (IEDC) will receive $35 million over the next two years - half the amount appropriated last biennium. Supporting numerous entrepreneurial ventures over the last 10 years, IEDC uses the fund to offer loans and grants to companies bringing new technologies to market, to match SBIR grants, and to create University Centers of Excellence. Additionally, no funding was included for IEDC's High Growth Business Incentive Fund, which received $3 million last biennium.

The Technology Development Grant Program, which supports the creation and expansion of technology parks, will receive $3.8 million over the biennium, $400,000 less than last biennium.